I just got a 27 inch monitor, and now have it set up with dual screen with my old 23 inch monitor. the bottom of the screen on both is pretty much even, but the top is way off. so now whenever I move the mouse from one monitor to the other the mouse jumps way up or way down. they are both the same resolution.
is it possible to change the physical size of the monitor in windows 7 so it moves across smoothly? I remember there being an option something like this in windows XP, but I can't find it.
and before you say so, I know there is a way to move the monitors in the display management tool, what I want to do is shrink one of the displays.

Depending on your monitor, you may be able to set your 27 inch to do a 1:1 pixel scaling and set it to the same resolution as your 23 inch monitor assuming they have the same dot pitch. At the very least, you could get the display to be approximately the same size so you don't have as much jumping when you move between monitors. The only problem with this is that you would get a black box around the image on the larger monitor.

I go into the display control panel under Win7 and if you go to "adjust resolution" you can drag the monitors and change their relative position. I have a 24" next to my 27" and I basically have the mouse within a millimeter up or down when it jumps from one screen to the next. Alternatively the higher vertical resolution of the 27" (1440 versus 1200) means I have two small strips top and bottom where the mouse will stick a bit because it's real estate not on my 24" but it works pretty well.

__________________Xeven: How about 10^8.450980400142567e-001 -as a possible replacement for "10e"

both the monitors are 1080P. so I would have to drop the resolution on the smaller monitor for that to work and I would much rather not.
as I said, after using it for a little while I have gotten used to it.

hah. I had the same dilema. I was using a Samsung 245B 1920x1200 monitor and added a Dell Ultrasharp U2711 2560x1440 to the mix. I also found that it quickly become much less of an issue in time. By going into "screen resolution" you can adjust things (dragging the monitor icons) so that your displays line up at the bottom or top. I choose to have mine lined up at the top so I can quickly access the show desktop button without being super accurate. I don't like how the position of the top bar gets thrown all over the place when one displays goes "higher" than the other. My primary monitor (U2711) lives on the left and the Samsung monitor lives on the right.